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what it is
Wolfspeed makes silicon carbide chips that help electric cars, chargers, and power systems handle electricity more efficiently.
how it gets paid
Last year Wolfspeed made $758M in revenue.
why growth slowed
Revenue fell 6.1% last year. Revenue fell 7% vs. prior year to $168 million.
what just happened
Wolfspeed reported revenue of $168M and an EPS loss of -$5.78, far worse than the -$0.50 estimate.
At a glance
B balance sheet — gets the job done, barely
45/100 earnings predictability — expect surprises
-$11.39 fy2025 eps est
$2B fy2026 rev est
n/a operating margin
xvary composite: 48/100 — below average
What they do
Wolfspeed makes silicon carbide chips that help electric cars, chargers, and power systems handle electricity more efficiently.
Wolfspeed sells silicon carbide chips and materials into places where failure is expensive, like EV drivetrains and fast chargers. Silicon carbide → chips that waste less power at high voltage → your customer saves energy and heat in systems that cannot afford sloppy performance. That edge is real, but the moat looks tiny when annual revenue is just $758 million and long-term debt is $2.1 billion.
How they make money
$758M
annual revenue · revenue declined -6.1% last year
total revenue
$758M
6.1%
The products that matter
semiconductor materials
Silicon Carbide Wafers
part of a $758M segment view
These wafers sit upstream of the chip business and are part of the $758M combined Materials and Devices revenue shown in this snapshot. If wafer economics do not improve, the rest of the model has nowhere to hide.
core input
power conversion chips
Power Devices
part of a $758M segment view
These chips target electric vehicles, industrial systems, and data-center power management. The market is real. The problem is that Chinese competition is already putting pressure on pricing before Wolfspeed has fixed its cost base.
pricing pressure
Key numbers
-175.4%
operating margin
Operating margin → profit after running the business → so what: Wolfspeed lost about $1.75 for every $1 of sales.
$2.1B
long-term debt
That debt load is about 2.8 times the company's roughly $753 million market cap, which tells you creditors matter more than shareholders right now.
$758M
annual revenue
That is the whole sales base carrying $2.1 billion of debt while the company is still losing money at the gross profit line.
46.5%
gross margin
Gross margin → money left after production costs → so what: the factory economics are upside down before most operating expenses even show up.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $2.1B (73% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for WOLF right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Wolfspeed reported revenue of $168M and an EPS loss of -$5.78, far worse than the -$0.50 estimate.
Revenue fell 7% vs. prior year to $168 million. Gross margin stayed deeply negative at -46.5%, which tells you the company is still losing money on the products themselves.
$168M
revenue
$5.78
eps
46.5%
gross margin
the number that mattered
The key number was -46.5% gross margin because it means higher sales do not fix the business until unit economics turn positive.
source: company earnings report, 2026
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What could go wrong
The #1 risk is negative silicon carbide unit economics after bankruptcy. A company that just reworked its capital structure still posted a -47% gross margin, which means the fix has not reached the factory floor yet.
med
Gross margin is still deeply negative
A -47% gross margin on $168.5M of revenue means Wolfspeed is losing money on the product before operating expenses. That is not cyclical noise. That is an operating model problem.
If this does not move sharply toward breakeven, revenue growth will not save the equity case.
med
Cash burn can outrun the cash balance
Cash and equivalents were $1.3B, but long-term debt was $2.1B and quarterly operating loss hit $158.4M. You do not need many quarters like that before liquidity becomes the whole conversation.
This risk puts pressure on funding flexibility, vendor confidence, and eventually shareholder value.
med
Post-bankruptcy does not mean post-risk
Wolfspeed emerged from Chapter 11 on September 29, 2025. The filing may be behind it, but investors still need proof that the reorganized company can actually earn money in silicon carbide.
A cleaner capital structure helps, but it does not manufacture margins.
med
Chinese pricing pressure can keep getting worse
Chinese silicon carbide suppliers have scaled quickly, and the company already faces intense pricing competition in a market where it needs better economics, not worse ones.
Lower pricing could delay any margin recovery and make the $2B revenue expectation harder to monetize.
The combined risk picture is simple: $1.3B of cash sounds large until you pair it with $2.1B of debt, a $158.4M quarterly operating loss, and a -47% gross margin.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
Gross margin recovery
Start here. If -47% does not improve materially over the next few reports, the turnaround is a story without an operating fix.
risk
Liquidity burn versus $1.3B cash
Quarterly operating loss was $158.4M. You do not need a spreadsheet to see why cash usage matters more than polished strategy language.
calendar
Post-bankruptcy reporting cadence
The March 9, 2026 unaudited pro forma release matters because it starts the clock on what the reorganized company actually looks like in public numbers.
trend
Chinese silicon carbide pricing
If industry pricing keeps moving down, Wolfspeed needs even better manufacturing execution just to stand still.
Analyst rankings
earnings predictability
45 / 100
A 45 / 100 score means the numbers are not stable. In human-speak, analysts do not trust this business to deliver smooth quarters yet.
beta
1.85
Beta measures how much a stock tends to move versus the market. At 1.85, WOLF usually moves with extra drama attached.
source: institutional data
Institutional activity
institutional ownership data for WOLF is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$21
current price
n/a
target midpoint · n/a from current
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